Acompany has only two divisions: division a and division b. last year, division a made 60% of the company's total revenue and division b made 40% of the total revenue. this year, division a's revenue has decreased by 35% and division b's revenue has decreased by 5%.
which division had higher revenue this year?
a) division a
b) division b
c) they are both the same
d) it is impossible to determine with the available information

Division B (B)

Explanation:

Let the total company revenue be 'x'

If division A made 60% of the total revenue, this means division A made 60% of x = 0.6x

Division B made 40% of the total revenue i.e 40% of x = 0.4x

If this year Division A revenue decrease by 35% i.e 0.35x, this year revenue for division A will be;

0.6x-0.35x = 0.25x

This means that division A generate 25% of the company revenue this year.

Similarly for division B, their revenue decrease by 5%, their revenue decrease will be 5% of x which is 0.05x, therefore their revenue for this year will be;

0.4x-0.05x

= 0.395x

This means that division B generate 39.5% of the company revenue this year.

According to the calculation, division B had the highest revenue this year.

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the correct answer is - no.

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